FedEx Corp Earnings Cheat Sheet: Profitable Quarter Accelerates Growth

S&P 500 (NYSE:SPY) component FedEx Corporation (NYSE:FDX) reported its results for the second quarter. FedEx provides various transportation, e-commerce and business services.

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FedEx Earnings Cheat Sheet for the Second Quarter

Results: Net income for FedEx Corporation rose to $497 million ($1.57 per share) vs. $283 million (89 cents per share) in the same quarter a year earlier. This marks a rise of 75.6% from the year earlier quarter.

Revenue: Rose 9.9% to $10.59 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FDX beat the mean analyst estimate of $1.52 per share. Analysts were expecting revenue of $10.58 billion.

Quoting Management: “Our improved performance was largely a result of effective yield management programs and strong demand for FedEx Home Delivery and FedEx SmartPost services,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “With the healthy growth in online shopping this holiday season, demand is increasing for these residential delivery services.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 22.1% and in the fourth quarter of the last fiscal year, the figure rose 33.2%.

Revenue has risen the past four quarters. Revenue increased 11.3% to $10.52 billion in the first quarter. The figure rose 11.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 11.1% in the third quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of $1.46 versus a mean estimate of net income of $1.47 per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is $1.33 per share, down from $1.37 ninety days ago. At $6.30 per share, the average estimate for the fiscal year has fallen from $6.57 ninety days ago.

Competitors to Watch: United Parcel Service, Inc. (NYSE:UPS), Air Transport Services Group Inc. (NASDAQ:ATSG), Air T, Inc. (NASDAQ:AIRT), OfficeMax (NYSE:OMX), Staples (NASDAQ:SPLS) and Office Depot (NYSE:ODP).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)